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LEARNING INTERNAL
AUDITING SKILLS

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AUDIT DEFINITIONS
As defined in ISO 19011:2011 Guidelines for Quality and/or
Environmental Management Systems Auditing Systems

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AUDIT
• Systematic, independent and documented process for
obtaining audit evidence and evaluating it objectively to
determine extent to which the audit criteria are fulfilled.

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AUDIT EVIDENCE
• Records, statements of facts or other information, which
are relevant to the audit criteria and verifiable.

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AUDIT CRITERIA
• Set of
– Policies
– Procedures
– Requirements

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AUDITOR
• Person with competence to conduct an audit

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AUDITEE
• Organisation being audited
• In case of Internal Audit organisation means department /
function

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AUDIT FINDINGS
• Results of the evaluation of the collected evidence against
audit criteria

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AUDIT CONCLUSION
• Outcome of an audit, provided by the audit team after
consideration of the audit objectives and all audit findings

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AUDIT TEAM
• One or more auditors conducting an audit, supported if
needed by technical experts

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TYPES OF AUDIT
• 1st Party - Internal
• 2nd Party - Sub-contractor / Supplier
• 3rd Party - Certification Body

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1st PARTY
INTERNAL AUDITS
Internal Audits are, a Management Tool to support overall
Management Systems, that identifies the company’s:
 Compliance to defined objectives;
 Identifies system effectiveness;
 Minimise the risk of loss of certified status

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STAGES OF AUDIT
• Audit Planning
• Audit Preparation
• Audit Execution
• Audit Reporting, Follow up & Close out

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PHASE 1 - PLANNING
• Annual plan covering all procedures and improvement targets.
• Quarterly Programs
– Specific audit schedule and dates
– Auditor allocation

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PHASE 1 - PLANNING
• WHAT to Audit - area/activity and QMS Element;
• WHEN to Audit - the Frequency;
• WHO Should Audit - Select the Auditors based upon
competence and independence;

• WHERE to Audit - area/activity - “localised” or everywhere.

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PHASE 1 - PLANNING
• Planning in 1st party auditing is primarily concerned with
deciding the frequency
• “independent of the function being audited”

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AUDIT SCHEDULE

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AUDIT SCHEDULES
Some areas of the company activity are more significant than
others based upon the IMPORTANCE & STATUS of those activities
and as such the audit schedule can be developed ensure that
these are audited more frequently and/or more deeply than the
areas that are less significant.”

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AUDIT SCHEDULES
The company should be able to demonstrate that they:
• Understand which are the most critical areas of the activity to
control;
• Understand that if these elements are either weak or
ineffective then the company, and the system, is at risk.

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PHASE 2 PREPARATION
• Preparation of checklists - summaries of the actions
described in procedures that will act as a guide to the
auditor during the audit activity;
• Preparation of Audit Plans for the audit and, if necessary,
briefing of auditors on the important areas for audit.

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AUDIT CHECKLIST
Check List Should:
• Use the Company’s Words not Auditor’s Preference
• Contains Cross - References to Relevant sections of
Procedures
• Contain The Answer as well as The Question
• Be Legible

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PHASE 3 EXECUTION
• Audit Questions
– How - Process
– Where - Locations The “5W & 1H” Bible
– When - Sequence
– What - Information
– Why - Understanding
– Who - Responsibilities
• The Basics of All Questions But Must Be Used Carefully.
• Open ended, closed questions

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PHASE 3 EXECUTION
• Audit by own trained staff-independent from area/activity
under audit
• Informal opening meeting with Dept. Head
• Using audit-trail, check list and questioning to confirm
compliance
• Preparing non-conformances and observations
• Informal closing meeting

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PHASE 3 EXECUTION
Communication “Rules”
• Meet the Manager First - Politeness
• Talk to the “Performer” not the “Supervisor”
• Explain Why You Are There
• Be Calm, Polite and Re-assuring
• Never Be Superior
• Speak Clearly & Carefully
• Ask the Right Question to the Right Person
• Never Assume
• Ask the Question in a Style that “fits” the Auditee
• Do not be led by the auditee

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HOW
The ways in which effectiveness can be judged are:

 Review of data that demonstrates compliance with

standards;
 Listening
 Looking

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PEOPLE
• Their involvement
• Training given
• Communications
• Participation

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CONDUCT OF AUDIT
Communication Skills:
- Listen, Appreciate and analyze
- Do not dominate
- Be unbiased

The 5 W’s and 1H - The Basis of all Auditing Questions

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QUESTIONING
A question such as,
"can you show me where you keep your copy of the
procedure?" tells the Auditee that
– There should be a procedure present and;
– He knows where it is;
– It is available for use and reference if necessary.

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QUESTIONING
"have you been trained for the job you do?",
Not good - yes / no ???

"what kind of training have you been given by the company?"

Better, invites conversation

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AUDITOR CONTROL
 Insist that people being questioned answer for themselves;
 Do as little talking as possible; let others do that;
 Do not let the auditee dictate the pace of the audit;
 Rephrase misunderstood questions;
 Give compliments where applicable; say thank you.

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AUDITOR CONTROL
 Time wasters
 Interruptions
 Missing documents & data
 Missing key personnel
 Sampling you choose

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ANTAGONISE OR
DICTATE????
• It is not the role of the auditor to dictate what is good or bad
or to criticise a method of work
• Auditor’s should never take sides in an argument

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RECORDING AUDIT EVIDENCE

• The auditor is there to collect and record objective evidence
of conformity, not just non-conformity
• Document All the relevant information to help you make a
decision & as a reference of what you examined

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BASIC RULES
Do:

 Establish relevant documents are correct issue;

 Observe work progression when necessary;

 Evaluate physical evidence;

 Examine Inputs and Outputs.

 Make comprehensive notes;

 Seek verification – do not just believe what is stated ask show me.

 Assume people will miss lead but seek to verify statements, if

necessary;
 Be punctual;

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BASIC RULES
Do Not:
 Be sloppy - be well dressed;
 Be Impatient - be courteous and calm;
 Be Vague with questions - be precise with questioning;
 Be led - remember to be independent all the times.

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AUDIT FINDING
An audit finding is defined as:
• The result of the evaluation of the collected audit evidence
compared against the agreed audit criteria. The findings
provide the basis for the audit report".

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NON-COMPLIANCE
A non-conformity is:
• The non-fulfilment of specific requirements

• A non-compliance is, effectively:

• The failure to satisfy a requirement of a Standard, or
defined practice.

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CLASSIFICATION OF
NON-COMPLIANCES
Non-compliance's are categorised as:
• Major
• Minor

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DOCUMENTING
NON-COMPLIANCES
• Clause of the standards
• Procedure reference
• Area / activity
• Factual objective evidence
• Classification Major - Minor
• Plus name, date, company reference, close out date

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DOCUMENTING
NON-COMPLIANCES
Must be FACTUAL, CLEAR & CONCISE
• Confusion;
• Waste of time, effort and money;
• Continuing and, sometimes, exaggerated, non-compliance;
• Loss of confidence in the assessors and the certification
body.

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Internal Audit : Non-conformity /Non Compliance Report

Name of Deptt./Section/ Activity:
NCR No.: Major / Minor Date

Clause Reference to Document

Non Conformity

Auditor: Acknowledge by Auditee:

Root cause analysis (to be filled by Auditee)

Corrective and Preventive Actions (to be filled by the Auditee)

Proposed Completion Date: Actual Completion Date: Auditee:

Remarks by Auditor Accepted / Not- Accepted

Follow up comments (if any) by Auditor

Review by MR
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OBSERVATIONS/
OPPORTUNITY FOR IMPROVEMENTS
• suspect in terms of long-term sustainability;
• less than well organised;
• over-complicated;
• not mandatory
• simple statements that might benefit the company

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PHASE 4NON-CONFORMANCE
& CORRECTIVE ACTION
Establish and maintain procedures for defining responsibility and
authority, for handling and investigating non-conformance, and for
initiating corrective and preventive action.

Corrective or preventive action shall be appropriate to the

magnitude of problem and commensurate with the impact
encountered.

Implement and record any changes in the documented procedures

resulting from corrective and preventive action.

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NON-CONFORMANCE &
CORRECTIVE ACTION
Establish and maintain procedures for investigating and correcting
non- conformance:
• Identify the cause of non – conformance
• Identify and implement the necessary corrective action
• Implement or modify controls necessary to avoid repetition of
the non-conformance
• Record any changes in written procedures, resulting from the
corrective action
Be accomplished rapidly. The associated documentation should
be appropriate to the level of corrective plan.
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CLOSE OUT
CAR, the speed of response will vary:
• Majors are closed out as soon as possible or downgraded
to Minor,
• Minors are scheduled for close out at earliest opportunity
after verification of effective implementation.

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QUESTIONS

THANKS FOR YOUR ATTENTION

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